Levi Strauss & Co. (NYSE: LEVI) shares are experiencing a decline in current market trading today, registering a decrease of -1.06% and settling at $13.07. In the preceding session, Levi Strauss stock exhibited a decrease of 1.64%, ultimately concluding the session at $13.21. The subdued performance of LEVI stock can be attributed to the release of its recent financial results.

Levi Strauss (LEVI) has released its financial results for the third quarter of 2023, revealing a nuanced performance. The company achieved notable success in its direct-to-consumer (DTC) sector, marked by robust comp-store gains, which compensated for a sluggish wholesale channel, especially in the United States.

In Q3, LEVI reported net revenues of $1.5 billion, remaining stable year-on-year but showing a 2% decline in constant currency terms. DTC net revenues shone, surging by 14% on a reported basis and 13% on a constant-currency basis, driven by growth in stores and e-commerce, with a 19% increase in e-commerce revenues. Impressively, DTC accounted for 40% of total net revenues.

Wholesale net revenues, on the other hand, declined by 8% on a reported basis and 10% in constant-currency terms, with Asia and Latin America growth partially offsetting contractions in North America and Europe.

In the Americas, net revenues dropped by 5% on a reported basis, but DTC net revenues grew by 12%. Europe faced a 2% drop in net revenues but saw a 10% increase in DTC net revenues, excluding Russia. Asia was a bright spot, with net revenues growing by 12%, driven by China.

LEVI’s other brands, like Dockers and Beyond Yoga, displayed positive results, reflecting solid international growth and DTC performance.

Levi Strauss (LEVI) Q3 results showcase its resilience in a challenging market. DTC growth remains a key driver, though regional performance varies, with Asia standing out as a promising market. LEVI’s adaptability in diverse market conditions remains crucial as it charts its path forward.